Hi, could anyone pls help with the question? I am confused with the difference among: Notified claims reserve IBNER reserve Outstanding claims reserve Thanks for help.
Dear Iwang, Have a look at page 9 of Chapter 1, which explains this in detail. Outstanding claims (also called outstanding reported claims, reported unpaid claims, or case estimates) is the reserve for claims that have been reported to the insurer but which have not yet been paid. IBNER is the reserve required in case the case estimates are not big enough. Often, there is no explicit IBNER reserve. "Outstanding claims reserve", or OCR is used, particularly in an accounting context, to mean "outstanding reported claims + IBNER + IBNR + reopened claims reserve + claims handling expenses in respect of these claims." Note then that this is not the same as the "outstanding reported claims" above. "Notified claims reserve" is not a commonly used term; perhaps you have heard it at work? It would mean "case estimates + IBNER + reopened claims reserve + claims handling expenses in respect of these claims". It's very important that you be comfortable with these ideas. I'd certainly recommend that you read page 9 of Chapter 1 very carefully and learn their glossary definitions. Good luck! Katherine.
